Enterprise platforms to support integration requirements

In the enterprise iPaaS market, organizations are

adopting a semi outsourced approach to

integration, whereby responsibility for

integration projects is maintained in-house (or

delegated to a trusted system integrator). The

implementation, provisioning, operation,

monitoring, management and maintenance of

the enterprise-grade integration platform are

instead delegated to an external service

provider delivering the platform as a cloud

service. An integration platform in the form of a cloud service that targets enterprise

requirements and use cases is indeed an enterprise iPaaS.

Gartner estimates that the enterprise iPaaS market expanded notably in 2014, approaching a

quarter of a billion dollars and growing over 60% in terms of providers' subscription revenue.

However, some providers far exceeded this growth and, in some cases, registered a triple-digit

growth rate, thus notably winning market share. However, Gartner estimates that several

enterprise iPaaS providers generate less than $10 million from their offerings; some collect higher

amounts, but only one exceeds $50 million.

iPaas Market Trends

As per Gartner iPaaS market is poised to dramatically grow over the next five years because of

several factors, including:

The explosion of CSI, MAI, API and IoT requirements

The emergence of the adaptive integration approach and citizen integrators — for whom

traditional integration platforms are generally unsuitable

Adoption by SMBs that so far have often been unwilling to embrace integration

middleware because of its high cost and complexity, but are now interested in iPaaS

offerings due to their low entry cost and ease of use

Entry in the market of megavendors and influential software players that can deploy

powerful marketing and sales machines to sustain their iPaaS ambitions

This expected growth and increasingly strategic relevance of iPaaS have attracted investments

from startup companies, megavendors, established on-premises middleware players, providers

of other forms of platform as a service (PaaS), and SaaS players. All the vendors are eager to get

their fair share of this new, fast-growing market and, most importantly, to establish control in

user organizations' crucially strategic next-generation integration infrastructure.

Emergence of hybrid integration platforms

As per Gartner report during the next three to five years, this tension will gradually be resolved,

because of the emergence of hybrid integration platforms and bimodal approaches that will:

Combine iPaaS and traditional integration middleware characteristics

Enable multiple deployment models

Empower citizen integrator, adaptive and traditional approaches

Support a wide range of business requirements

Fast growth of the enterprise iPaaS market, combined with the rapidly expanding penetration of

public cloud services in large enterprises, not only appeals to newcomers, but also attracts

investments from the traditional integration middleware powerhouses. These vendors see their

entry in the enterprise iPaaS market as a way to:

Address SMBs (a segment most of them have neglected)

Cross-sell to their established clientele

Counter the penetration of enterprise iPaaS pure-play providers in large organizations,

especially at the LOB/departmental level

Revamp and reinvigorate their integration platform businesses, still primarily based on

previous-generation on-premises integration technology and currently characterized by

slow (if not negative) growth rates

One of the biggest barriers to effective cloud adoption is connecting, synchronizing, and relating

data, applications, and processes between cloud and on-premise systems—more than 64 percent

of companies indicated they face this challenge today.

The added complexity makes it difficult for you to effectively share and use business data

throughout your organization.

According to Senior Analyst, “enterprises need to undertake integration infrastructure

modernization to effectively exploit the quartet of digitalization, mobility, cloud, and IoT for

driving business growth. There will be less inertia to a shift toward agile approaches to integration

and/or cloud-based integration services, and this will translate into a growing market

opportunity for both established and specialized integration vendors.”

Source: http://bit.ly/1IVDPRN